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Inditex’s net income increased 8.5 per cent YoY to reach €4.4 billion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 7.2 per cent to reach €8.0 billion. EBIT increased 9.3 per cent to €5.7 billion. Proffit before tax (PBT) increased 9.9 per cent to €5.8 billion, and net income increased 8.5 per cent to €4.4 billion (~$4.625 billion). The company continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated store and online business model, Inditex said in a press release.
Inditex has reported sales of €27.4 billion (~$29.044 billion), an increase of 7.1 per cent YoY for 9M 2024.
Gross profit rose 7.2 per cent to €16.3 billion (~$17.11 billion), with a 59.4 per cent gross margin.
Net income grew 8.5 per cent to €4.4 billion (~$4.625 billion).
For 2024, it expects a stable gross margin and a 3 per cent currency impact on sales.
The Spanish brand opened stores in 45 markets during 9M 2024. At the end of the period, the company operated 5,659 stores. Sales in constant currency grew 10.5 per cent showing very satisfactory development both in stores and online.
The operating expenses of the company increased 7.0 per cent, below sales growth, and generated strong cash flow and reinvested back into the business. The company’s net cash position grew 3.0 per cent to €11.8 billion.
Due to the strong operating performance over 9M 2024, inventory was 2.6 per cent lower as of October 31, 2024, versus the same date in 2023, said the press release.
Outlook
For full year 2024, Inditex expects a stable gross margin of +/-50 bps. At current exchange rates, the company reiterates its expectation of -3.0 per cent currency impact on sales in 2024. It also estimates ordinary capital expenditure of around €1.8 billion.
Fibre2Fashion News Desk (SG)
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